FORECAST ROBUST growth within the Association of Southeast Asian Nations (ASEAN) is expected to prop up the real estate sector on the back of strong domestic demand, according to a report from consulting firm Jones Lang LaSalle released yesterday.
In particular, growth will be experienced in the office, industrial and logistics and retail spaces.
“This growth translates to robust domestic investment into commercial property, driving demand for office and logistics space.
“Increased consumer spending will boost demand for expanded retail formats, which in turn will support the developments of retail malls and the subsequent accompanying infrastructure in emerging markets,” said Chris Fossick, managing director of Jones Lang LaSalle Singapore and Southeast Asia.
Add to the upbeat outlook is the “increased transparency in the real estate market” in ASEAN economies, or proper disclosure of costs and transactions involved in property ownership.
The consulting firm said in its recent transparency report that six ASEAN countries saw improved scores last year, namely, Singapore, Malaysia, the Philippines, Indonesia, Thailand and Vietnam.
Meanwhile, Jones Lang LaSalle sees a growing labor market, more sophisticated needs and new markets as key opportunities for the property sector.
“While economic growth drives corporate activity across Southeast Asia, businesses are making changes to accommodate growing workforce and modernized office spaces in new, emerging markets,” the report said.
In particular, Jakarta, the Philippines and Thailand were cited to rising demand in office space.
It said the Philippines “often overlooked by investors, witnessed record levels in demand for office space, sparking new developments in previously unexplored sub markets and a 3% rise in rents from the same period 2012.”
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